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Competition Among Buyers

Thursday, 28th January 2010

Categories: Sales Market Analysis Selling Tips

Author: Peter Barry

With a continuing shortage of good quality properties coming on to the market and prices rising steadily the balance of power is likely to remain with sellers for the months ahead. There is fierce competition among buyers on the most popular properties and only those that put themselves in a good position are likely to be successful.

It is common for several offers to be made on one property and it is the agent’s job to help the owner select which is the most likely to translate into a smooth, trouble free sale. The first thing that the agents will look at is the length of your chain. Even on the more expensive houses it is surprising how many unencumbered buyers there are out there. All other things being equal a buyer with no related sale will always be favoured over one with a chain.

After a sale has been agreed there is a 70% chance that it will fall through (although at Peter Barry we pride ourselves on a much lower fall through rate) so if you have 4 links in the chain the chance of that transaction completing average around 25%. If you want to beat the competition in this market be prepared to break the chain, go in to a rented property and put yourself in a good position.

It is also important that you have a handle on your finances before offering on a property. Vendors will expect their agent to speak to a buyer’s broker and confirm their position, if you can get an offer in principle this is ideal.

Finally be prepared to put yourself out to view a property when it goes on the market. If a buyer is getting a lot of interest in their property they are unlikely to want to work around your schedule.

The situation will change before too long but for the moment it remains a seller’s market and if you want to get a look in you have got to put yourself at the front of the queue.